Why System Software Company Mobileye Shares Are Diving Today

Mobileye Global Inc MBLY shares are diving today by around 22% after it provided preliminary Q4 and FY23 results.

For Q4, the company expects revenue of $634 million-$638 million (vs. $636.39 million) and adjusted operating income of $241 million-$247 million. The company's previous implied guidance was $623 million-$648 million in revenue.

For FY23, MBLY expects revenue of $2.076 billion-$2.080 billion (vs. $2.08 billion estimate and prior guidance of $2.065 billion-$2.090 billion) and adjusted operating income of $687 million-$693 million (vs. $648 million-$665 million prior).

FY24 Outlook: The company expects revenue of $1.83 billion-$1.96 billion (vs. $2.58 billion estimate) and adjusted operating income of $270 million-$360 million.

MBLY expects EyeQ shipments of 31 – 33 million units (vs. around 37 million units in 2023) and SuperVision shipments of 175k – 195k units (vs. around 100k units in 2023).

MBLY projects Q1 revenue to be down approximately 50% Y/Y and expects revenue over the remaining year to be impacted by inventory drawdowns to a much lesser extent. 

Consequently, the company projects revenue for Q2 through Q4 FY24 on a combined basis to be roughly flat to up mid-single-digits Y/Y and expects inventory at its customers to be at normal levels by the end of 2024.

Also, for Q1, MBLY anticipates an operating loss of $(257) million-$(242) million and expects lower-than-expected volumes in the EyeQ SoC business to impact its profitability temporarily. 

Also Read: Mobileye Lowered Revenue Outlook But These Analysts Are Still Bullish - Here's Why

Price Action: MBLY shares are down 22.48% at $30.79 on the last check Thursday.